National Holidays on Sundays: Should Employees Get Extra Pay or a Compensatory Day Off?

If any National & festival holiday falls on a Sunday, should that day be paid as an extra salary or given as a compensatory off (C-off)? For example, total days in a month = 30, payable days = 26 (excluding Sunday - Weekly Off). National & festival holidays fall on any Sunday.

What should be done in this scenario?
Is it necessary to pay one day extra? Or is the normal monthly salary sufficient since the holiday falls on the Weekly Off day? Or should an extra leave day (C-off) be granted to employees?

Please clarify and provide any relevant sections related to this issue.

Thanks & Regards,

Location: Mumbai, India

Tags: City-India-Mumbai, Country-India, national holiday, festival holiday

In India, when a national or festival holiday falls on a Sunday, the options for employers are as follows:

- As per the Shops and Establishments Act, if a holiday falls on a Sunday, employers are typically not obligated to provide an extra day off or pay additional wages.
- The practice commonly followed by many organizations is to compensate employees by providing an additional day off or a compensatory off (C-off) on a different working day.
- It is important to review the company's policies and employment contracts to determine if there are specific provisions addressing the scenario of holidays falling on Sundays.
- Employers should communicate clearly with employees regarding the compensation or leave arrangements in such situations to avoid any misunderstandings.
- If the organization decides to provide a C-off, it should be scheduled within a reasonable timeframe and in consultation with employees to ensure operational continuity.

It is advisable for employers to consider the provisions of the applicable labor laws, company policies, and employment contracts when making decisions regarding compensating employees for holidays falling on Sundays.